The document discusses a study on the effectiveness of marketing strategies adopted by insurance companies in India. It provides background on the insurance sector in India and describes the objectives and hypotheses of the study. The study uses both secondary and primary research methods involving a survey of 200 individuals. Statistical analysis tools like factor analysis, reliability testing, cross-tabulation, and paired t-tests are used to analyze the data and test the hypotheses. The findings suggest that insurance companies need to further develop their strategies to better cater to customer needs and increase business volumes. Specifically, they should focus on product differentiation, innovation, advertising, and new promotional approaches.

1. A STUDY ON THE
EFFECTIVENESS OF THE
MARKETING STRATEGIES
ADOPTED BY INSURANCE
COMPANIES”
Guided By: Prof. Surabhi Singh
Presented By : Soma Dey
D
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YEAR – 2013-15

3. INSURANCE SECTOR IN INDIA
• Insurance is the equitable transfer of the risk of a
loss, from one entity to another in exchange for
payment. It is a form of risk management primarily
used to hedge against the risk of a contingent,
uncertain loss.
• An insurer, or insurance carrier, is a company selling
the insurance; the insured, or policyholder, is the
person or entity buying the insurance policy. The
amount of money to be charged for a certain amount
of insurance coverage is called the premium.

5. The Structure…!!
• The insurance industry of India consists of 52 insurance companies of which 24 are in
life insurance business and 28 are non-life insurers.
• Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector
company.
• Apart from that, among the non-life insurers there are six public sector insurers.
• In addition to these, there is sole national re-insurer, namely, General Insurance
Corporation of India.
• Other stakeholders in Indian Insurance market include agents (individual and corporate),
brokers, surveyors and third party administrators servicing health insurance claims.
• Out of 28 non-life insurance companies, five private sector insurers are registered to
underwrite policies exclusively in health, personal accident and travel insurance
segments.
• They are Star Health and Allied Insurance Company Ltd, Apollo Munich Health
Insurance Company Ltd, Max Bupa Health Insurance Company Ltd, Religare
Health Insurance Company Ltd and Cigna TTK Health Insurance Company Ltd.
• There are two more specialized insurers belonging to public sector, namely, Export
Credit Guarantee Corporation of India for Credit Insurance and Agriculture
Insurance Company Ltd for crop insurance.

6. MARKET SIZE…!!
• India's life insurance sector is the biggest in the world with about 36 crore policies which
are expected to increase at a compound annual growth rate (CAGR) of 12-15 per cent
over the next five years. The insurance industry plans to hike penetration levels to five
per cent by 2020, and could top the US$ 1 trillion mark in the next seven years.
• The total market size of India's insurance sector is projected to touch US$ 350-400
billion by 2020 from US$ 66.4 billion in FY13.
• The general insurance business in India is currently at Rs. 77,000 crore (US$ 12.41
billion) premium per annum industry and is growing at a healthy rate of 17 per cent.
• The Rs. 12,606 crore (US$ 2.03 billion) domestic health insurance business accounts for
about a quarter of the total non-life insurance business in the country.
• Investment corpus in India's pension sector is anticipated to cross US$ 1 trillion by 2025,
following the passage of the Pension Fund Regulatory and Development Authority
(PFRDA) Act 2013, according to a joint report by CII-EY on Pensions Business in India.
• Indian insurance companies are expected to spend Rs. 117 billion (US$ 1.88 billion)
on IT products and services in 2014, an increase of five per cent from 2013, as per
Gartner Inc.
• Also, insurance companies in the country could spent Rs. 4.1 billion (US$ 66.11 million)
on mobile devices in 2014, a rise of 35 per cent from 2013.

7. Impetus for Marketing Strategy:
• India is a jumbo-sized opportunity for Life as well as General insurance need
hardly be labored.
• Here is a nation of a billion people, of whom merely 100 million people are
insured.
• And, significantly, even those who do have insurance are grossly underinsured.
• The emerging middle class population, growing affluence and the absence of
a social security system combine to make India one of the world’s most
attractive life insurance markets.
• No matter how you look at it – whether in terms of insurance premiums as a
percentage of GDP or premium per capita – the market is under penetrated
and people are under-insured.
• In a country where there is high unemployment and where social security
systems are absent, life insurance offers the basic cover against life’s
uncertainties.

8. Contd..
• India has traditionally been a savings-oriented country and insurance
plays a critical role in the development of the Indian economy.
• The role of insurance in the economy is vital as it able to mobilize
premium payments into long-term investible funds.
• As such, it is a key sector for development. So, marketing strategies are
important and inevitable phenomenon to tap huge untapped potential.
• Effective selling of insurance policies depends to a large extent on the
marketing strategies selected.
• As the market for insurance is dynamic and accompanied by rapid
changes in the environment due to advancements in technology and
uncertain economic conditions, coupled with inflation, increased
attention must be given in the future to the selection of marketing
strategies.

9. Let’s have a look…!!
Components of Marketing Strategies:
• Pricing
• Personal selling
• Advertising
• Word of mouth selling
• Institutional image
• Quality control
• Marketing orientation

10. OBJECTIVES OF THE STUDY
• The research study will be based on two main
objectives:
– To know about the recent trends in the marketing
strategies adopted by insurance companies of
India.
– To know whether the new adopted marketing
strategies have helped the insurance companies of
India to increase their business volume.

11. PURPOSE OF THE STUDY
• Since economic reforms the insurance sector is
changing rapidly due to the continuous change
in the customer needs and preferences. These
changes have helped in a great number to both
the urban and rural consumers.

12. HYPOTHESES OF THE STUDY
• In order to achieve the defined purpose of the
research study following hypotheses have been
considered:
– Is the recent trends in marketing strategies adopted by
Insurance companies of India are fulfilling the
customer’s needs and preferences.
– Is the current marketing strategies adopted by the
Insurance Companies of India are helpful in terms of
increase business volume.

13. Research Methodology
• The research methodology adopted for this study is basically related
to the exploratory research method. The research study is based on
the secondary sources as well as primary sources for collecting data.
• The secondary data consisted of Annual reports of LIC and IRDA
and also some other published journals and magazines of LIC like
Yogeashema monthly journal, Pragati quarterly magazines for the
concerned topics of related years.
• For Primary data responses of 200 individuals are surveyed. 75 of
them are already having insurances, 75 are on process, 18 are
positive and 32 are not interested.
• Based on the observations and using the SPSS tools analysis is been
done and conclusions are made.

14. DATA COLLECTION AND ANALYSIS
• “Individual satisfaction leads to Group satisfaction”
• SAMPLE DESIGN
– Population:
• The populations across regions like DELHI, GURGAON &
MUMBAI
– Sample size:
• 200 Individuals
– Tools for data collection
• Self-designed Questionnaire was used for collecting data for observing
responses of Individuals with respect to Insurance and the strategies
used. The data was collected on a scale of 1 to 5 where 1 indicated
maximum disagreement and 5 indicated maximum agreement with the
statement.

15. RELIABILITY TEST
INTERPRETATION
• Corn Bach’s Alpha is applied to
check the validation of the project.
It is applied to check the feasibility
of the project that is to see whether
it is feasible to carry out the
project further or not.
• Value greater than 0.6 signifies
that data is reliable therefore the
value of Cronbach’s Alpha is .866
so we can go further analysis of
the data.
Reliability Statistics
Cronbach's Alpha N of Items
.866 14

16. KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy. .786
Bartlett's Test of
Sphericity
Approx. Chi-Square 216.611
Df 55
Sig. .000
• Kaiser-Meyer-Olkin
Measure of Sampling
Adequacy:
– It is an index used to examine two
things:
– Sample size is adequate.
– Factor analysis is applicable or not.
• Value lying between 0.5 to 1,
indicate the validity of the
above two statements.
– Here, KMO Value is 0.786> 0.5
– Thus, sample size is adequate and
factor analysis can be applied.
• Bartlett's Test of Sphericity:
– This test is used to examine the
hypothesis that variables are not
correlated with each other.

17. FACTOR ANALYSIS
Factor name
Eigen value
VARIABLE CONVERGENCE LOADING
VALUE
TOTAL % OF
VARIANCE
Strategies
3.301 30.006
SERVICES_CRM .809
TECHNOLOGY .803
SECURITY .722
SCHEMES .669
FLEXIBILITY .640
PREMIUMS .548
Voice of Customer
3.208 29.160
INSTITUTIONAL_NAME .884
MARKETING_ORIENTATIO
N
.843
DEDICATION .804
WORD_OF_MOUTH .616
Media 1.251 11.369 ADVERTISEMENTS .888
INTERPRETATION:
So the three factors evolved are:
a) Strategies
b) Voice of Customer
c) Media

18. Is the recent trends in marketing
strategies adopted by Insurance
companies of India are fulfilling the
customer’s needs and preferences.
Hypothesis 1:

19. CROSS-TABS – 1
AGE * PREMIUMS
• H0: There is no difference in
perception about Premium prices offers
among different age groups in India.
• H1: There exists a difference in
perception about Premium prices offers
among different age groups in India.
INTERPRETATION
• As we see the p-value is more than 0.05,
we accept Ho, which means that there
doesn’t exist any difference in
perception about Premium prices
offered by Insurance Companies with
reference to different age groups in
India.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square .933a 4 .920
Likelihood Ratio .944 4 .918
Linear-by-Linear
Association
.074 1 .785
N of Valid Cases 75

20. CROSS-TABS – 2
AGE * SERVICES-CRM
• H0: There is no difference in
perception about customer services
provided among different age groups
in India.
• H1: There exists a difference in
perception about customer services
among different age groups in India.
INTERPRETATION
• As we see the p-value is more than
0.05, we accept Ho, which means that
there doesn’t exists any difference in
perception about customer services
provided by Insurance Companies
with reference to different age groups
in India.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 10.280a 4 .036
Likelihood Ratio 11.351 4 .023
Linear-by-Linear
Association
2.014 1 .156
N of Valid Cases 75

21. Is the current marketing strategies
adopted by the Insurance Companies
of India are helpful in terms of
increase business volume.
Hypothesis 2:

22. PAIRED t- test – 1
Paired
Differences
T Df Sig. (2-
tailed)
95%
Confidence
Interval of the
Difference
Upper
Pair 1
HAVE_INSU
RANCE –
SCHEMES
-.348
-
4.851
74 .000
HAVE_INSURANCE – SCHEMES
• H0 : There is no significant mean
differences between the perceptions
of those who have insurance and the
different schemes for their investing
plans.
• H1 : There exists significant mean
differences between the perceptions
of those who have insurance and the
different schemes for their investing
plans.
INTERPRETATION:
• As we see the p-value is less than
0.05, we reject Ho, which means that
there exists significant mean
differences between the perceptions
of those who have insurance and the
different schemes for their investing
plans.
Mean N Std.
Deviatio
n
Std. Error
Mean
Pair 1
HAVE_IN
SURANCE
3.08 75 .673 .078
SHEMES 3.24 75 1.282 .134

23. PAIRED t- test – 2
Paired
Differences
T df Sig. (2-
tailed)
95%
Confidence
Interval of the
Difference
Upper
Pair 2
HAVE_INSU
RANCE –
ADVERTISE
MENTS
-.448
-
4.861
74 .000
HAVE_INSURANCE – SCHEMES
• H0 : There is no significant mean
differences between the perceptions
of those who have insurance and the
different advertisements that they are
exposed to.
• H1 : There exists significant mean
differences between the perceptions
of those who have insurance and the
different advertisements that they are
exposed to.
INTERPRETATION:
• As we see the p-value is less than
0.05, we reject Ho, which means that
there exist significant mean
differences between the perceptions
of those who have insurance and the
different advertisements that they are
exposed to.
Mean N Std.
Deviatio
n
Std. Error
Mean
Pair 2
HAVE_IN
SURANCE
3.08 75 .673 .078
ADVERTI
SEMENTS
3.84 75 1.163 .134

24. FREQUENCY MAPPING
CHART 1
1. Have an Insurance
2. Looking for getting one
3. Positive but not yet decided
4. I am not interested
0%
19%
54%
27%
HAVE_INSURANCE
HIGHLY SATISFIED SATISFIED NUETRAL UNSATISFIED
INSURANCE_HOLDER
Frequency Percent Valid
Percent
Cumulative
Percent
Valid
1 75 37.5 37.5 37.5
2 75 37.5 37.5 75.0
3 18 9.0 9.0 84.0
4 32 16.0 16.0 100.0
TOTAL 200 100.0 100.0

25. FINDINGS & CONCLUSION
• New approaches to strategize the productization of insurance services
• Innovation
• Product/Service differentiation
• Advertising and sales promotion
• Latest New Promotional Strategies Adopted
– Push or Pull Strategy
– Communication Model
– Promotion Through product Life Cycle
As through different analysis that we have done so far, it is pretty visible that
somehow, the insurance sector needs itself to develop in order to cater their
customers’ needs and wants and at the same time increase their volume.
So taking those points on which we analyzed, some findings that are drawn
are given as follows:

26. What did…
MAX NEW YORK LIFE INSURANCE
Do????

27. • This would definitely be the ‘Karo Zyada Ka Irada’ campaign for Max
New York Life.
• Life insurance has traditionally been sold on the plank of duty and
responsibility. It has been about ‘Jeevan, Zindagi and Suraksha’. (Anish
Motwani, 2012)
• But a resurgent India was rewriting the rules of living in its mission to
create, indulge and celebrate. Earnings, savings, investment and
consumption where the force multipliers that would feed this virtuous
cycle of need and want as people moved from denial to desire. That was the
basis of the ‘Karo Zyada Ka Irada’ campaign. It was an integrated launch
across multiple consumer touch points. Its efficacy was proved with the
brand awareness moving upwards by 25 points in just 18 months.
• As Per her Life Insurance are Business of Life and Not Finance. It touches
the most memorable and emotional milestones of one’s life from marriage,
to childbirth to children’s education, and so on. People also have to be
prepared for sudden accidents and eventualities.
• At each stage there is a different need that arises. The marketing strategy,
therefore, has to emanate from a deeper understanding of this entire
journey.

28. Max Life Insurance Marketing Strategy
The other various Channels employed
are:
• Insurance Agents.
• Direct Selling Agents.
• Internet.
• Banc-Assurance (First Level)
Product Strategy
• The MNYL Industry exhibits the
following FIVE Product Levels:
• 1. The core benefit: Security.
• 2. Basic Product: Health, Child, Life,
Pension and Growth.
• 3. Expected Product: Claim Settlement.
• 4. Augmented Product: Electronic Fund
Transfer for Claim Settlement.
MNYL has mainly used ZERO Level Channels to sell the products to its customers. Zero
Level Channel of Distribution: (Hitesh Bhasin, 2010) It consists of a manufacturer directly
selling to the end consumer. This might mean door to door sales, direct mails or
telemarketing. Zero Level Channel of distribution is giving the manufactured products
directly to consumers with our any intermediaries.

29. MAX NEWYORK MODERN CUSTOMER ORIENTED
ORGANIZATION FLOW CHART:
In this the Max New York Life Culture is about:
1. The Customer Comes First.
2. Do it right the first time.
3. Bias for result oriented action.
4. Financial strength and discipline.
5. Clarity of Purpose.
6. International Quality Standards.
7. Inclusive Meritocracy.
8. Learning Opportunities.
9. Fun at Work.
10. Commitment to Published value system.
MNYL adopted different
Organizational chart
compared with traditional
one where top management
comes first. But here for
them Customer Comes
First.

30. SUGGESTIONS:
• With the opening up of Insurance
Sector, more private players started
entering the Industry with new
products and new marketing strategies.
So at present to Increase or hold up the
current market share in the Insurance
Industry the following should have to
be followed:
• Well establish Infrastructure facilities.
• Call – Centre Facilities.
• Different New Product development.
• Studying Market segmentation before
introducing the new product.
Market Segmentation:
• In Insurance Industry currently there
is no separate plan for very low
income group / daily wage earner
group.
• They should have to think and adopt
a very good and innovative policy
for daily earner and also to provide
them with good policy.
• Studying Market Segmentation such
as Low Income and High Income
people hold the line between them.
• Because in India Low Income groups
are more compared to High Income
therefore the Insurance Industry
should have to come with new
products which will attract the low
Income group people.

31. My Recommendations…!!
From the above study, I want to recommend that the
marketing strategy should have to be adopted
cautiously after studying various parameters such as
customer expectations and Perceptions in to account.

32. • Technology - Information Technology progress is a major driver behind the structural
change in the Life insurance industry to enhance risk transfer efficiency. E-business
opens up new ways to reduce costs while lowering market entry barriers and facilitating
the break-up of the traditional insurance value chain. Insurance clients will benefit from
greater transparency, lower prices and improved services – not just in the sales area, but
also in claims management.
• Customer relationship management: Insurance companies experiencing competition
from within and abroad. In line of this, customer relationship management is a measure
of winning competitiveness as it is the information-driven approach to customer analysis
and process automation; and thereon supplement customer-value proposition.
• Distribution channels: The distribution network is most important in insurance
industry. Insurance is not a high cost industry like telecom sector. Therefore it is building
its market on goodwill and access on distribution network. This can be better done by
more innovative channels like a super market, a bank, a post office, an ATM,
departmental store etc. these could be used to increase channels of insurance. But such
growth in channels shall increase with time. Till then agents seem to be the most
important distribution channel in this industry.

33. DISTRIBUTION CHANNELS
• At present the distribution channels that are
available in the market are listed below:
– Direct selling
– Corporate agents
– Group selling
– Brokers and cooperative societies
– Bancassurance
– Mall assurance

34. While conducting the survey some troubles were faced, for which the
survey results are uncertain. Some problems enlisted are as follows:
• Banks were not ready to share their database.
• Had to ask each person do they have insurance or not, so no proper
evidence.
• Rush time, authenticity lacks due to disinterest in filling up of
questionnaires.
• Online questionnaires are filled, so again authenticity lacks.
• A big reason for taking insurance was missed out unfortunately – Tax
benefits.
Some of these reasons led to sampling errors that are beyond control.
Hence a confidence interval of 95% is taken.

35. REFERENCES…
1. Singh Anuroop Tony. (2004). Challenging Opportunity. Asia Insurance Post, 28-29.
2. Chandok Anil. (2006). Application of CRM in the Insurance Sector. Insurance Chronicle, May,17-19
3. Balaji, B (2002), Services Marketing and Management. New Delhi, S.Chand & Company Ltd. Booms,
B.H. and Bitner, M.J. (1981), “Marketing Strategies and Organization Structures for Service Firms”,
Marketing of Services. Donnelly J.H and George W.R. Chicago: American Marketing Association, pp.
47 – 51.
4. IRDAANNUAL REPORTS 2006-2007 TO 2010-2011.
5. Kulkarni S J and Dr. P N Sagar, Recent Trends In Marketing Strategy of LIC of India, Half-Yearly
Research Journal, Mahmul 02922/2011, Vol.1 Issue: 1, Feb.2011 to July 2011-ISSN No.2231-6671, Pg.
No.20 to 25.
6. Singh Baghel Saurabh, A Report on Promotional Strategies Adopted by ICICI Life Insurance Company
Dated: 26.01.2008. http://spcincjabalpur.blogspot.in/2008/01/report-on-promotional-strategies.html
7. Motwani Anish, Director and CMO, Max New York Life Insurance,
http://www.thehindubusinessline.com/features/weekendlife/article3631292.ece
8. A Study of Marketing Concepts Applied “ Max New York Life” Theme: Knowledge for Application
(Component 2) http://www.scribd.com/doc/22752054/MAX-New-York-Life.
9. Verma Santhosh Kumar, Summer training report, “Peoples Perception and Awareness concerning
Pension Plans in New Delhi, Diploma in Management (IRM))
http://www.scribd.com/doc/36152222/SBI-Life-Insurance
10. Annual Reports of LIC of India since 2001-02 to 2011-12.
11. Annual Reports of IRDA since 2001-02 to 2011-12.
12. Related issues of ‘Yogeashema’ a Journal of LIC of India.
13. Rao T.S. Ramakrishna (2000). The Indian Insurance Industry the Road Ahead, Journal of Insurance
Chronicle, Vol. III, Issue I, Jan. 2007, p. 31.
14. www.licindia.com
15. www.irdaindia.org

36. QUESTIONNAIRE
Why has Insurance taken hype?
Which marketing strategies are working and which are not?
a) Age
1. 20 – 30
2. 30 – 40
3. 40 – 50
4. 50 and above
b) My take on being an Insurance holder?
1. Have an Insurance
2. Looking for getting one
3. Positive but not yet decided
4. I am not interested
c) Having an insurance, I am
1. Highly Satisfied
2. Satisfied
3. Neutral
4. Unsatisfied
5. Highly Unsatisfied

37. S# Strategies Not At All
Beneficial
Not
Beneficial
Neutral Beneficial Very Much
Beneficial
A Premium Prices are ranged as per need of the
customer.
B Different schemes catering to individuals needs
and wants.
C The technological innovation has increased the
diversity for each individual as well as family.
D Reach has become easier as it is just a door step
away.
E The services provided in form of Customer
relationship 24x7 has been a step further.
F Security provided has given a better choice to
adapt new policies.
G My neighbors and peers influence.
(Word of Mouth)
H The name of the Institution gives an additional
faith upon the product.
I The marketing Orientation for the companies are
based not only their profit but to serve the
customer first.
J Dedication towards the services provided.
K Flexibility in changing the policies.
L Different advertisements are a constant
knowledge up-gradation.
d) My views for the strategies used by the Insurance providers are -

38. FOR LISTENING…!!